85% of our readers support PIL1

Pan Island Link 1 (also known as PIL1) is currently one of the most debated infrastructure projects in Penang. The proposed dual three–lane highway will be connecting Second Bridge and the Penang International Airport all the way towards George Town, Paya Terubong, Bayan Baru, and Relau. It is expected to reduce travelling time from Persiaran Gurney to Penang International Airport (PIA) to only 15 minutes.

A group of concerned Penangites, have started an online petition to call for the cancellation of the project while there is also an opposing petition that calls for the approval and implementation of the PTMP, which includes the PIL 1.

To shed some light on this subject, we did a quick poll on our Facebook page and received few hundreds votes in one day (Poll results). Although this may not necessary represent the entire population, but the result gives a clear indication that 85% of our readers support the implementation of PIL1.

More about Pan Island Link 1

Straits City, a 40-acre prime seafront integrated development by the Singapore Exchange-listed Straits Trading Co Ltd and its dual-listed subsidiary, Malaysia Smelting Corp (MSC). Strategically located in the Central Business District of Butterworth, a mere 2km from Penang Sentral, Straits City enjoys unparalleled connectivity with well-established transportation options such as trains, and ferries, while also providing easy access to major highways.

This development comprises a mix of residential and commercial components, aiming to transform the area into a vibrant hub. It envisions shaping the future of work, living, and recreation, fostering a thriving community and leaving an indelible mark on the cityscape.

Project Name: Straits City
Location : Butterworth
Property Type : Mixed development
Built-up Size: (to be confirmed)
Total Units: (to be confirmed)
Indicative Price: (to be confirmed)
Developer: STC Property Management Services Sdn. Bhd.

Location Map:

SITE PROGRESS

SITE PROGRESS: Straits City (Jan 2024)

SITE PROGRESS: Straits City (Feb 2021)

The reintroduction of the Sales and Services Tax (SST), slated in September, is unlikely to reduce house prices despite cost savings of at least 1% to 2% for property developers, said Paramount Corp Bhd group CEO and director Jeffrey Chew.
He explained that this was because construction costs account for just half of the overall development cost and the small savings may or may not be passed back to consumers, depending on the price of the properties.

“Some of the products building materials are tax exempted, but bear in mind that if you look at the sales price… which we call it as the gross development value, within that there is the land cost which is roughly 18-20%.

“Then, you have a lot of soft costs including financing cost, contribution cost that will take another 10-15%.

“The actual construction cost is about 50% or slightly less than 50%, so when you talk about material cost in construction, it is actually a small portion.

“SST also applies to services as well, such as consultancy fees, architect fees – those are under the SST service tax.

“For us in the property sector, the change of the SST from the Goods and Service Tax, the cost comes down by only 1-2%.

“Sometimes we pass it back to the buyer, sometimes we use it to absorb the cost for the increase in raw materials,” Chew told the media at an analyst and fund manager’s briefing for Paramount Corp’s first half of 2018 financial results.

He added that the 1-2% of the cost savings may be passed on to their customers either through a better price structure, more fittings in their property or better-quality products to their customers.

“Again, it depends on the demand and supply. If the properties that we launch are very cheap and in a good location, then the price will probably not come down.

“But for properties that are not selling very well, we will see the possibility of the developer giving more discounts on that because the costs have been lowered.

“So again, it depends on market forces and [prices are] market-driven. We know that Malaysia is a very dynamic open market and market force will drive the price. But definitely, there will be an element of price containment and also a little bit of price reduction of the products,” said Chew.

Paramount’s Utropolis@Batu Kawan in Penang has seen strong demand, especially being located next to Design Village, as well as the ongoing construction works of the KDU campus, Aspen Vision City and the IKEA outlet.

Source: EdgeProp.my

The cancellation of the controversial Pan Island Link 1 (PIL 1) highway project is not an option. Chief Minister Chow Kon Yeow said today the project would begin as soon as the Federal Government gave its approval.

“If it is not rejected (by the Federal Government), then we will make the necessary adjustments (based on feedbacks received) before we kick-start the project,” he said.

“For us, this project is crucial to alleviate traffic congestion on the island. We intend to start building the most-needed section of PIL 1, which is the last section from Bukit Gedung to the Tun Dr Lim Chong Eu Expressway.

“The construction of PIL 1 from Bukit Gedung to the Bayan Lepas interchange will have a major positive impact by providing relief to Penangites who live and work in the Sungai Ara, Relau, Bayan Baru and Bayan Lepas Free Industrial Zone areas that are heavily congested on working days.”

He said the state government would hold a town hall meeting on the PIL 1 highway project early next month, pending official notification by the Environment Department. He said details would be announced soon.

Chow said the state government had engaged more than 16,500 stakeholders on its transport initiatives, which included PIL 1, light rail transit and Penang South Reclamation projects.

“We have conducted 965 engagement sessions since December 2015 and we will continue to hold similar sessions, with several planned soon, he added, brushing aside claims that the state government had not been transparent about the Penang Transport Master Plan (PTMP), which includes PIL 1.

“In fact, this is the largest-ever engagement sessions for any projects, not only in Penang, but in the country.”

He added that, although it was not required by law, the state had taken the initiative to put the Request For Proposal documents for the project on public display.

The 19.5km PIL 1 highway includes a 10km tunnel that cuts through the hills in Bukit Bendera, Paya Terubong and Sungai Ara to alleviate traffic congestion. It will also cut across the Youth Park.

The multi-billion ringgit highway will allow traffic to go directly from Gurney Drive to Gottlieb Road, Youth Park, Sungai Keluang and the Second Penang Bridge, cutting travelling time by more than half. The highway project will affect 226 buildings.

Numerous protests have been held by Penangites and non-governmental organisations to call for the PIL 1 to be scrapped and for the PTMP to be reviewed.

Source: NST Online

Want to learn more about investing in property and what SST & GST means to property market? Hear what the experts say at Setia Sky Vista Sales Suites @ Lebuh Relau, Penang.

25/08/18 2:30 pm
“Is this the time to invest in properties” by Miichael Yeoh.

26/08/18 2:30pm
“GST vs SST. What it means to property investor” by Richard Oon.

[Sponsored Ad]